Cardano price has held steady in the past few days as the recent rebound stalled. ADA token was trading at $0.70 on Tuesday, a few points below this month’s high of $0.746. It has jumped by over 37% from the lowest point this month, bringing its market cap to over $25 billion. This article examines whether Cardano can surge by 70% if Bitcoin experiences a significant increase.
Will Bitcoin price rise to $100K?
Bitcoin is the most important catalyst for Cardano and most altcoins. In most periods, these tokens jump when Bitcoin is in a strong rally, and vice versa. For example, many altcoins have surged recently, following BTC’s rise to nearly $95,000 for the first time in over a month.
Technical analysis suggests that the BTC price will experience a strong bullish breakout in the coming weeks. It has avoided forming a death cross pattern as it did last year ahead of its strong surge.
Bitcoin sits above the 50-day and 200-day Exponential Moving Averages (EMA). It has also moved above the key support level at $88,760, the neckline of a double-bottom pattern that happened at $76,400. A double bottom is one of the most popular bullish patterns.
Fundamentally, Bitcoin continues to see inflows from Wall Street investors as it evolves into a safe-haven asset. These investors moved over $3 billion to Bitcoin funds last week, and the trend may continue this year. Michael Saylor’s Strategy continued buying Bitcoin last week.
Therefore, the coin is likely to continue rising as bulls target the key resistance level at $100,000, which is approximately 6% above the current level. A move to $100k will likely usher in the next bull run.
How high will the Cardano price get if BTC hits $100k?
Cardano price fell and formed a double-bottom pattern at $0.518 last week. A double bottom is one of the most bullish patterns in technical analysis. Its neckline is at $1.173, its highest level on March 3.
The price remains above the 61.8% Fibonacci Retracement level at $0.681. It has also formed a small bullish flag chart pattern, a popular continuation sign.
Cardano price has risen above the 50-day moving average. Therefore, the token is likely to continue rising as bulls target the next significant resistance level at $1, representing a 40% increase from the current level. This rebound will happen if Bitcoin price jumps to $100k.
Other catalysts for ADA price
There are other potential catalysts for Cardano. The most important one is the upcoming integration of Bitcoin staking into its network. This integration will be safer than traditional platforms like Celsius, because it will use zero-knowledge proofs.
The Cardano price is likely to benefit from the upcoming approvals of altcoin ETFs. Odds that the Securities and Exchange Commission (SEC) will approve a spot Cardano ETF have jumped to over 70%.
Most importantly, there are signs that the SEC is considering allowing these ETFs to offer staking features. It met with Grayscale last week and deliberated about staking Ethereum ETFs.
Allowing staking will make Cardano ETFs more attractive as it will allow investors to generate a monthly return.
Still, Cardano faces numerous risks. The volume of stablecoins in the network has decreased to $30.2 million, down from $31 million in the previous month. This is notable because it indicates that activity in the network is waning. Similarly, the total value locked (TVL) in the network has dropped from $800 million earlier this year to the current $393 million.
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